Bookkeeping Options for Small Businesses

Small business owners have more than one bookkeeping option to choose from. They can use software, accountants, and more.

A small business owner has more than one option when it comes to bookkeeping. Running a small company will require wearing many different hats. It's very hard for one person to do it all. If partners, such as a married couple, own a business such as a plumbing service or one that installs garage doors, they may share the tasks. If one partner is good with number crunching and the other is adept at customer service, the DIY approach could work for them. If it's only a sole proprietor, wearing too many hats can cause a lot of pressure and stress. One thing is for sure, though, and that is that bookkeeping must be done accurately and promptly. If not, there could be trouble with Uncle Sam and the I.R.S. due to improperly paid taxes and discord with employees who weren't paid the correct amounts promptly. Consider the following options.

An Accounting Service

There are services that will take care of the books for a fee for small organizations. They can handle state and federal taxes, payroll, and record keeping. These services generally hire workers with experience in accounting that are not full-fledged accountants. There may be a CPA overseeing the organization.

Certified Public Accountants

CPAs are highly trained accountants that cost a pretty penny. Unless a small business makes huge money, having a CPA do all the books might be overkill. Having a certified public accountant do the annual federal and state taxes would be reasonable.

Computer Programs

There are many different computer programs such as Quick Books that can be used to take care of payroll, taxes and record keeping. It will still take some savvy on the part of the owner, however, and items must be put into the system regularly in order to keep the books current.

An Accounting Department or Clerk

Some medium sized companies have departments that take care of all the financial paperwork. It's helpful to have an in-house department that is well versed in the organization's set up, but this will only be realistic for a business of medium size or larger.


What to Look for

The person, organization, computer program, CPA or department that takes care of bookkeeping is an important entity. Even if a professional is taking care of it, an owner will still need to keep his or her finger on the pulse of the money. Important traits of bookkeepers include being:

Trustworthy

Check their references as well as their mathematics.

Smart

A person must have a math brain to crunch numbers effectively.

Experienced

You don't want a novice being your connection to the Internal Revenue Service. Get someone with experience to handle your books.

Within Your Budget

Although the CPA down the street might be a sharp accountant, if you can't afford his or her services, it's not a wise move to use him or her except for annual taxes.

Bookkeeping is an important task in running a small organization. It can be taken care of by the owner(s), a service, a CPA, a computer program, a department or a clerk.

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